How to install Win7 system on a virtual machine:
1. Open Parallels Desktop (from the application folder) and select “File”>“New”.
2. If you have a Windows installation disk, insert the DVD driver. If you have a USB storage with Windows, you can connect it to your Mac.
3. Click to install Windows or other operating system from a DVD or image file.
4.Parallels Desktop scans and enumerates the operating systems that can be installed.
Figure 1: Scanning the operating system
5. If the Windows installation source does not appear automatically, click “local search" to manually browse, you can browse from the following sources:
DVD: If you have a Windows DVD, please insert the DVD drive. Once Windows is detected, click Continue. If your Mac does not have a DVD drive, you can use Apple SuperDrive, use a Mac's other DVD drive from a remote disk, or create an image file from a CD.
Image File: If you have a Windows image file, click on the image file and drag and drop the image into the Parallels Wizard window. Once Windows is detected, click Continue.
USB Driver: If you have a Windows bootable USB installer, click on the USB driver and connect the driver to your Mac. Once Windows is detected, click Continue.
6. Confirm that “Quick Install” is selected.
Note: If you uncheck "Quick Install", you will need to install Parallels Tools separately after installation to allow seamless operation between Windows and Mac OS X.
Figure 2: Quick Install
7. Choose how you want to use Windows.
Like a Mac: Windows programs appear on the Mac desktop just like Mac apps. Documents and media files from Mac OS X and Windows are integrated on your Mac.
Just like PC: Windows desktops and applications appear in a separate window, independent of the Mac application. You can drag and drop targets between Windows and Mac.
8. From the "Location" menu, select the location where you want to save Windows.
By default, Parallels Desktop saves Windows in the "Documents>>“Parallels folder”. To allow all users of your computer to access Windows, check Share with other users of your Mac.
Figure 3: Save Location
9. If you want to pre-set some parameters, such as how much memory Windows uses or if Windows wants to run automatically when you open Parallels Desktop, select Set before installation. These settings can also be adjusted after the operating system installation is complete.
10. Click “Continue”, the new assistant will start installing Windows.
After the Windows installation is complete, you can start Windows by opening a Windows program or by clicking the power button in the Parallels virtual machine list.
Important: When you first start Windows, Parallels Tools is installed to allow seamless operation between Windows and Mac OS X. Once the Parallels Tools installation is complete, you will be prompted to restart Windows.
When you install Windows, Parallels Desktop creates an administrator account with an empty password. It is recommended to change this password after the installation is complete.
Note: You can also install Windows from the disk image file on the installation CD. Simply select the disk image file in step 4 above. Parallels Desktop supports ISO, DMG, CUE, and CCD disk mirroring.
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